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The Assistant Censor-in-chief of the Right Shang Zhou-zuo, grand coordinator of Fu-jian, reported advice that the "red yi" had respected the instructions, demolished their walls and moved away in their ships. It was ordered that the ministry be informed. Note: The "red-hair yi" are distant yi from the country of Holland (和蘭) in the South-West and in the past they had not had contact with China. The Fu-jian merchants were each year issued warrants for trading with the country of Patani and with Batavia and these yi traded with them at these places. In the jia-chen year of the Wan-li reign (1604/05), the evil person Pan Xiu traded to the country of Patani, linked up with these people and brought them here. They occupied Peng-hu and sought to trade with China. This was not permitted and it was ordered that they trade at Patani like before. Subsequently, due to the long journey, very few trading ships went there. Those who were given the warrants for trading to that port (lit: bay) preferred a shorter route and higher profits and thus they secretly traded with Luzon. The yi grew aggrieved and suspected that Luzon had intercepted and detained the trading ships. They despatched many yi troops, first attacking Luzon and then attacking Xiang-shan Bay. On both occasions they were defeated and they dared not return to their country. Subsequently, they skulked to Peng-hu in the Fu-jian seas, erected walls and occupied it. They claimed that this was for "self-defence". Actually it was a plan of intimidation in their quest for trade. These yi relied on their huge ships and large guns, which are useful on the water but not on land. Further, their only aim was to gain China's valuables. As they had exerted pressure but had not obtained anything, they gradually repented. The various generals who feared calamity then used the bait of trade so as to have the yi demolish their walls and move to the distance. It was thus that they became submissive and they listened to orders. Actually, there was no major victory.